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Collateral Damage

October 5, 2011

By Spencer Checketts

In case you haven’t noticed, we’re living in the midst of severe uncertainty in The United States right now. For the first time in my generation’s existence, we have suffered a full decade of economic decline, leaving millions of American’s out of work and/or living below the poverty line.

According to www.tradingeconomics.com, the unemployment rate is currently at 9.1 percent, with 14.1 million Americans currently looking for work. The U.S. Census Bureau reports that 15.1 percent of the country is living below the poverty line, representing 46.2 million citizens. And for an additional tug at the heart strings, 22 percent of children (18 yrs and below) are among the 46.2 million people living in poverty.

Not exactly the ideal time to sit back and watch a bunch of millionaires haggle and argue over how exactly to split a pile of money estimated to be worth $3.6 billion.

Welcome to the NBA lockout.

There are many complex issues on the table here. Now is not the time to delve into salary rollbacks, lowering the value/length of guaranteed contracts, amnesty clauses, the difference between a “soft” and “hard” salary cap, etc. Yawn.

Now is the time to send a message to the owners and David Stern. Now is the time to knock some sense into the players and Billy Hunter:

Go lock yourselves in a hotel (or a plush Manhattan conference room) for however long it takes, and make a deal.

Your country needs you, and needs you now. This work stoppage goes far deeper than making the rich richer and helping NBA owners dig themselves out of a mess that in large part they created themselves.

It has reached the point where tangible financial repercussions are now being suffered by people and/or businesses on the peripheral who count on the business of basketball to supplement their own income. Or, in some cases, rely on the basketball season to put food on the table.

When David Stern initially announced that his league would lockout its players, he briefly touched on the “collateral damage” a lockout would create. Starting now, the damage becomes real.

Yesterday the NBA announced the cancellation of training camps (set to start today and run through October 15th) and 43 pre-season games. By doing so, the NBA just flushed $200 million down the toilet without batting an eye.

The Utah Jazz was set to host 3 preseason games at EnergySolutions arena. Add 41 home games and (hopefully) and handful of playoff games. That totals north of 50 nights a year where restaurants, bars, clubs and retail stores in downtown Salt Lake City enjoy an influx of patrons who flock into their places of business before, or after watching the Jazz play at the ESA.

The General Manager of a prominent restaurant just a stones throw from Energy Solutions agreed to speak to this issue on the condition of anonymity, for fear of losing his job.

My question was simple: How would your business be affected should the Jazz miss the entire season?

His response (via e-mail):

“In a normal business year, we would look at Jazz game nights as gravy. Our restaurant typically sees about a 25-30% increase on game nights as opposed to a typical night of business during the Jazz’s season.”

“But this year I am afraid to say we are not equipped to operate without that extra business. We have all been hit incredibly hard in this industry. I have more than 50 employees working for me, and our servers rely on tips to make ends meet. Not to mention the valets, busers and cooks.”

He finishes his e-mail with this:

“To sum it all up, it is easily foreseeable for us to close our doors for good if the Jazz don’t play this year. That’s what’s at stake.”

So there you have it. Just one of many examples, I’m sure, of a business comprised of hard working Utah citizens who will be placed among the 14.1 million Americans already out of work should the NBA keep it’s arenas dark this year.

For a more in detailed look at how detrimental the lockout could be to Utah’s economy and exposure, check out Keith McCord’s piece here.

Among the most outspoken players during the negotiations has been Boston Celtic F Kevin Garnett. Garnett has admonished his cohorts in the players union to stay strong, and has declared his willingness to sit out the season and forfeit $18.8 million salary.

How noble. I suppose the $270 million he’s already made in his career provides a nice cushion for Garnett.

The U.S. Census Bureau reports the median household income in The United States is $49,445. Garnett makes about that much playing 2 games of basketball.

These guys don’t understand what’s at stake here, that much is clear. The average NBA player salary is north of $4 million, while the median is north of $2 million.

Waiting tables, driving cabs, ripping tickets, and busing tables don’t quite pay that much.

But while much less fruitful and glamorous, those jobs are just as important to the people who count on them to live as the jobs NBA players count on to make their millions.

I’m not taking a side between the players and the owners here. Both sides have simply showed a monumental failure to negotiate a deal up to this point.

But with everything that is at stake surrounding them, and with the economic instability surrounding our country, it’s time for them to look around and realize this is no longer about them.

It’s about all of us.

And it’s time to make a deal.

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